FX.co ★ Gold Wave analysis for August 18, 2014

Gold price has most probably completed the much anticipated pull back towards the 61.8% retracement I was expecting. Wave c has most probably been completed, so now I expect an upward reversal. Price is now expected to push higher towards $1,350 at least.

Gold price has completed three waves down from $1,322 where the 5 wave pattern ended. Gold price has reached my 61.8% retracement target. It should now reverse upwards above the Ichimoku cloud at $1,314. This will be the first bullish sign that an important low is hit. The decline is clearly corrective and there are increased chances of seeing Gold price move higher again.

The daily chart shows that Gold price has re-entered inside the Ichimoku cloud but still holds above the lower end of the cloud. Price is expected to rise from the current levels towards my medium-term target of $1,350.